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—5— Ch.415
<br /> SEC. 5. Section 110460 of the Health and Safety Code is amended to
<br /> read:
<br /> 110460. No person shall engage in the manufacture,packing,or holding
<br /> of any processed food in this state unless the person has a valid registration
<br /> from the department, except those engaged exclusively in the storing,
<br /> handling, or processing of dried beans. The registration shall be valid for
<br /> one calendar year from the date of issue,unless it is revoked.The registration
<br /> shall not be transferable. This section shall not apply to a cottage food
<br /> operation that is registered or has a permit pursuant to Section 114365.
<br /> SEC. 6. Section 111955 of the Health and Safety Code is amended to
<br /> read:
<br /> 111955. "Food processing establishment,"as used in this chapter,shall
<br /> mean any room,building,or place or portion thereof,maintained,used,or
<br /> operated for the purpose of commercially storing, packaging, making,
<br /> cooking, mixing, processing, bottling, canning, packing, slaughtering, or
<br /> otherwise preparing or handling food except restaurants."Food processing
<br /> establishment"shall not include a cottage food operation that is registered
<br /> or has a permit pursuant to Section 114365.
<br /> SEC.7. Section 113758 is added to the Health and Safety Code,to read:
<br /> 113758. (a) "Cottage food operation"means an enterprise that has not
<br /> more than the amount in gross annual sales that is specified in this
<br /> subdivision, is operated by a cottage food operator, and has not more than
<br /> one full-time equivalent cottage food employee, not including a family
<br /> member or household member of the cottage food operator, within the
<br /> registered or permitted area of a private home where the cottage food
<br /> operator resides and where cottage food products are prepared or packaged
<br /> for direct,indirect,or direct and indirect sale to consumers pursuant to this
<br /> part. In 2013, the enterprise shall not have more than thirty-five thousand
<br /> dollar ($35,000) in gross annual sales in the calendar year. In 2014, the
<br /> enterprise shall not have more than forty-five thousand dollars ($45,000)
<br /> in gross annual sales in the calendar year. Commencing in 2015, and each
<br /> subsequent year thereafter, the enterprise shall not have more than fifty
<br /> thousand dollars ($50,000) in gross annual sales in the calendar year. A
<br /> cottage food operation includes both of the following:
<br /> (1) A"Class A"cottage food operation,which is a cottage food operation
<br /> that may engage only in direct sales of cottage food products from the cottage
<br /> food operation or other direct sales venues described in paragraph (4) of
<br /> subdivision(b).
<br /> (2) A"Class B"cottage food operation,which is a cottage food operation
<br /> that may engage in both direct sales and indirect sales of cottage food
<br /> products from the cottage food operation,from direct sales venues described
<br /> in paragraph(4)of subdivision(b),from offsite events,or from a third-party
<br /> retail food facility described in paragraph(5)of subdivision(b).
<br /> (b) For purposes of this section,the following definitions shall apply:
<br /> (I) "Cottage food employee" means an individual, paid or volunteer,
<br /> who is involved in the preparation, packaging, handling, and storage of a
<br /> cottage food product,or otherwise works for the cottage food operation.An
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